Singapore: Risks recession bump on road to world’s fastest economy
A slide in Singapore’s manufacturing in the second half of 2010 risks pushing the country into its second recession in as many years even as the economy stays in the running to be the world’s fastest growing for the full year. The 19.8% annual rate of decline in GDP in the third quarter halted a record pace of expansion in the first half, according to a trade ministry report. The government says the economy may expand as much as15% this year, a prediction echoed by the International Monetary Fund and eclipsed only by Qatar, which is forecast by the lender to grow 16%. (Bloomberg)

China: Economy to slow in 2011, inflation under control
China's economic growth in 2011 will probably be marginally weaker than economists had expected three months ago as the government maintains its curbs on credit growth, according to a Reuters poll. The normalization of monetary policy will meet its objective in controlling inflation, the poll also showed. The median forecast of 27 analysts is for China's GDP to grow 10% in 2010, the same as in the previous poll published in July. They expect economic growth to slow to 8.9% in 2011. That compared to 9.0% in the previous quarterly poll. (Bloomberg)

South Korea: Holds key rate as won surge imperils exports
The Bank of Korea left borrowing costs unchanged for a third straight month as an appreciating won threatens export growth while offering a damper for inflation in Asia’s fourth-largest economy. Governor Kim Choong Soo and the policy board kept the seven-day repurchase rate at 2.25%, the central bank said in Seoul. Six of 10 economists surveyed by Bloomberg News forecast the decision. The rest predicted a 0.25 percentage point increase, following a similar move in July from a record- low 2%. (Bloomberg)

EU: German institutes say economy to grow 3.5% in 2010
The German economy, Europe’s largest, will expand more than twice the pace previously projected this year as consumers step up spending, the country’s leading institutes said in a twice-yearly joint forecast. GDP will rise 3.5% in 2010 and 2% in 2011, the institutes said. In April, they forecast the economy to expand 1.5% this year and 1.4% next year. That was before the Federal Statistics Office in Wiesbaden said surging exports helped fuel the fastest expansion in two decades in the second quarter. (Bloomberg)

US: Trade gap grows, jobless claims rise
Companies in the US are buying more foreign-made semiconductors and cars as they invest in equipment and build stockpiles, while also keeping a tight rein on payrolls, reports showed. The trade deficit widened 8.8% to USD46.3bn in August from USD42.6bn the prior month as a rise in imports swamped gains in exports, Commerce Department figures showed. The number of Americans filing claims for jobless benefits unexpectedly climbed by 13,000 to 462,000, according to the Labor Department. (Bloomberg)

US: Producer prices rose in September on food, fuel
Wholesale costs in the US for goods other than food and energy rose in September for a second month at a pace that suggests limited demand is restraining inflation. The so-called core producer price index increased 0.1% last month, Labor Department figures showed. Including volatile food and energy costs, wholesale prices rose 0.4%, exceeding the median estimate in a Bloomberg News survey of economists. (Bloomberg)

U.S: Jobless claims unexpectedly increased by 13,000 to 462,000 in the week ended Oct. 9. The total number of people on unemployment insurance rolls decreased to the lowest level since November 2008, while those getting extended benefits declined. (Source: Bloomberg)

U.S: Home seizures reach record in September as lenders review foreclosures . Lenders took over 102,134 properties last month, RealtyTrac Inc. said in a report. That was the highest monthly tally since the company began tracking the data in 2005, surpassing the August record of 95,364. Foreclosure filings, including default and auction notices, rose 3% MoM to 347,420. One out of every 371 households received a notice. (Source: Bloomberg)

China: Five-year plan may boost domestic demand as growth slows . The 12th five-year policy statement since the founding of the People's Republic in 1949, the plan will be discussed by top Communist Party officials this month before its formal unveiling at the National People's Congress in March, Bloomberg BusinessWeek reports in its Oct. 18 edition. The 12th Plan is forecast to emphasize a shift to domestic consumption, which makes up around 36% of GDP, and reduce reliance on export manufacturing and heavy industry. The talks come in the aftermath of the deepest drop in global trade since World War II, which, along with U.S. moves toward protectionism over China?s exchange-rate policy, have highlighted the dangers of an export-reliant economy. (Source: Bloomberg)

Japan: September producer prices fell for the first time since July as the yen's gain makes imports cheaper, adding to deflationary pressure on the economy. The amount companies pay for energy and unfinished goods fell 0.1% YoY in September. (Source: Bloomberg)

EPF, Khazanah to take over PLUS?
The Employees Provident Fund (EPF) and Khazanah Nasional will undertake to buy all the assets and liabilities of PLUS Expressways for some RM23bn, or RM4.60 per share, said sources. Khazanah already owns a 16.7% stake in PLUS. UEM Group, which is also owned by Khazanah, holds another 38.5%, making a total of 55.24% or 2.76bn shares. EPF has a 12.27% stake, or 613.47m shares, in PLUS. Together, EPF and Khazanah own a 67.5% stake in the toll road operator. Source said a special purpose vehicle (SPV) would be formed to acquire all the assets and liabilities of PLUS for about RM23bn, leaving the country’s largest highway operator a cash rich shell. (Financial Daily)

MBM acquires Lion Group’s auto business
MBM Resources is acquiring a 70.1% stake in Kinabalu Motor Assembly SB and the entire interest in Lion Motor SB from Tan Sri William Cheng’s Lion Group. In an announcement to Bursa Malaysia yesterday, MBM said it was forking out some RM16m as total consideration (including the assumptions of debts) for the two companies. MBM said the acquisitions, to be funded by internally generated funds, would allow it to “expand its automotive business”. The other shareholders of Kinabalu Motor are the Sabah state government and its associates, which collectively control a 29.06% stake. (Financial Daily)

K-One bags RM60m US deal K-One Technology has bagged a RM60m contract by US-based Diversey Inc to manufacture Diversey’s nonchemicals category equipment for industrial cleaning application for three years. In a filing to Bursa Malaysia yesterday, K-One said it will manufacture Diversey’s products including floor care machines, dosing and dispensing equipment. Wisconsin-based Diversey is a global conglomerate with sales turnover of about USD3bn (RM9.24bn) a year. (BT)

Tengku Ibrahim trims stake in Petra Perdana
Tengku Ibrahim Petra has trimmed his stake in Petra Perdana. He sold some 6.47m shares since early this month, reducing his stake to just below 8%, or 26.16m shares, in the oil and gas company. As at end-April this year, Tengku Ibrahim had 12.94% or 38.51m shares in Petra Perdana. It is unclear if Tengku Ibrahim plans to go on selling and eventually exit the company. (Financial Daily)

Proton aims to sell 1,600 Inspira per month
Proton Holdings is targeting to sell 1,600 units of its new mid-sized four door sedan, Inspira, every month. The car, which is essentially a rebadged Mitsubishi Lancer GT, will be launched on 10 Nov. Group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said the vehicle, which was already available for booking, would be positioned as a high C-segment/low D-Segment vehicle and would be tentatively priced from RM79,888 to RM95,000. He added that the development of the vehicle was in collaboration with Mitsubishi Motor Corp (MMC) of Japan. Selling price of the Mitsubishi Lancer GT starts from RM120,980. Vehicles within the C-segment include makes such as the Honda Civic or Toyota Altis while the D-segment comprises models such as Honda Accord and Toyota Camry. (Starbiz)

Court grants petition to wind up Kenmark
The High Court has granted the winding-up petition of Kenmark Industrial Co (M) by Export-Import Bank of Malaysia (EXIM Bank) under the provisions of the Companies Act 1965. In a note to Bursa Malaysia yesterday, Kenmark also said the High Court had granted the appointment of Messrs Deloitte Corporate Solutions SB as its liquidators. EXIM Bank had, on 8 June 2010, served a notice on Kenmark claiming RM16.31m owing to the bank pursuant to a line of revolving pre-shipment and post-shipment supplier credit facility of RM15mil granted to the company. On 18 Aug, EXIM Bank, through an ex-parte application through summons in chambers, received the court order for the appointment of the provisional liquidators of the company, pending the full and final disposal of the winding-up petition or until further order. (StarBiz)

TM: UniFi for 19 projects in Johor. Telekom Malaysia Bhd (TM) will sign service agreements with 19 property developers in Johor to provide high-speed broadband (HSBB UniFi) services in their projects next year. TM Johor GM said all 19 projects were located within Iskandar Malaysia in Greenfield areas where it would be easier to lay the HSBB infrastructure instead of brownfield areas or places that were already developed. Presently, 2,000 premises within Iskandar have access to HSBB UniFi and the figure is expected to increase to 120,000 by 2013. (Source: The Star)

TNB: Conducts feasibility study on ash. Tenaga Nasional Bhd is undertaking a feasibility study on finding a commercial and sustainable solution for recycling ash into industrial eco-minerals for its new coal-fired plant in Manjung, Perak. President and CEO said TNB had roped in RockTron (Asia) Sdn Bhd, an eco-technology company that pioneered the recycling of fresh and stockpiled fly ash, to jointly conduct the feasibility study. TNB plans to sell all the generated ash produced by the new plant to RockTron. RockTron will then recycle the fly ash into valuable eco-minerals. (Source: The Star)

E&E: Gets first entry point project. The electrical and electronics (E&E) lab sector under the Economic Transformation Programme (ETP) has received its first entry point project with the signing of two memoranda that promise new projects to bring high value-added investments into the semiconductor industry. A memorandum of agreement was signed between LFoundry GmbH from Germany with QT Hightech Malaysia Sdn Bhd while a memorandum of understanding was signed between LFoundry Malaysia Sdn Bhd with Mitsubishi UFJ. The partnerships have the potential of generating RM1.9b in investment over the next five years and creating 6,500 new jobs by 2020. (Source: The Star)

US dollar drops on Singapore action, gold climbs
HONG KONG, Oct 14 (Reuters) - The U.S. dollar fell broadly to a 10-month low after Singapore unexpectedly tightened policy by letting its currency strengthen, lifting Asian stocks and copper to two-year peaks and gold to a record high.
"One thing that people underestimate is that the U.S. will do everything in its power to reflate the economy. It's not just a question of QE2, but if required they will do QE3, QE4 etc," Pranay Gupta, chief investment officer for ING Investment Management Asia Pacific, said.

PRECIOUS-Gold hits record highs as dollar wilts
LONDON, Oct 14 (Reuters) - Gold rallied to fresh record highs in Europe on Thursday as the dollar slid to its lowest this year versus a basket of major currencies, boosting interest in the metal as a haven from currency market volatility.
"If there is further dollar weakness surrounding quantitative easing and the like, it is almost certainly going to be highly supportive for gold," said RBS Global Banking & Markets analyst Daniel Major.

FOREX-Dollar pummelled after Singapore widens FX band
LONDON, Oct 14 (Reuters) - The U.S. dollar index hit the year's low on Thursday while the Australian dollar flirted with parity after Singapore widened its currency's trading band, piling more pressure on to the struggling greenback.
"Effectively the Singapore move is a tightening of policy and it clearly shows Asian economies are at the opposite end of the spectrum compared to the spare capacity in the U.S. economy," said Chris Turner, head of FX strategy at ING.

ITS: export down 9.6% to 590,480 tonnes for the period of 1~15 Oct 2010.
SGS: export down 4.1% to 606,243 tonnes for the period of 1~15 Oct 2010.

Soy product futures pushed higher, climbing in unison with advances in soybean futures. A strong demand base served as an underpinning presence in the market, with solid export commitments for soyoil and a pickup in domestic usage for soymeal buoying prices, analysts said. December soyoil settled 0.44 cents or 0.9% higher at 48.02 cents per pound. December soymeal ended $2.70 or 0.8% higher at $331.70 per short ton. (Source: CME)

US corn, soybeans resume advance of weak dollar
SYDNEY, Oct 14 (Reuters) - U.S. corn, wheat and soybean futures advanced, resuming an upward trend supported by a weak dollar and tightening supply/demand balances.
"The dollar is the key driver as the fundamentals haven't really changed that much since last Friday's USDA report," said Brett Cooper, senior manager, markets, at FCStone Australia.

Better corn crop has U.S. hogs growing faster
CHICAGO, Oct 13 (Reuters) - This year's corn harvest has been good news for U.S. hog producers, who have watched their animals quickly gain weight as they eat the newly harvested grain.
As hogs gain weight quicker and on less corn than last year, that should help lessen the cost impact to producers of this year's high-priced corn.

Score new 2-yr highs; palm may breach 3,000 ringgit
KUALA LUMPUR, Oct 14 (Reuters) - Asian vegetable oil markets hit their highest in more than two years, with palm oil hovering near a key resistance level on a weaker U.S. dollar and supply concerns.
"Palm oil is in for the ride even though its own fundamentals are not necessarily that bullish since production could be on the rise in Malaysia," said a Malaysian trader with a foreign broker.

Pakistan palm oil imports seen steady in Oct-Dec -trade
ISLAMABAD, Oct 14 (Reuters) - Pakistan may buy up to 170,000 tonnes of palm oil a month in the October-December quarter, a leading industry official said on Thursday, as traders earn profits on current stocks in a bull-run global market.
Global vegetable oil markets hit their highest in more than two years on Thursday, with palm oil set to breach the key 3,000 ringgit resistance level on the weaker U.S. dollar and supply concerns.

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